Oracle Financial Services Software gets sued

This time it’s Oracle Finacial Services Software, which has come under fire from an Irish company.

The company, which is majority owned by Oracle, is being accused by Allied Irish Banks (AIB) of breach of contract, misrepresentation and negligence.

It wants to squeeze at least £71 million (€84 million) out of Oracle Financial for damages.

The sorry story begins way back in 2006 when the bank signed up for implementation of the Flexcube banking software.

It bought the Flexcube banking solution from I-Flex Solutions, which is now owned by Oracle and is now known as Oracle Financial Services, in 2007.

At the time, AIB said that Flexcube would “further develop our operational effectiveness” and “deliver enhanced services to our customers and help us grow and develop our business”.

An update on the project posted by Oracle in September 2008 said that some payments processing elements of Flexcube had gone live at AIB but the majority of the work had still not been done by 2010 and the bank went back to its old software.

An analyst told the India Economic Times that the matter would probably be settled out of court with a fraction of the cost being claimed as damages.